eBay’s Tax Bill for Bringing Cash Back to the U.S.: $3 Billion

EBay took the unusual step of bringing some of its foreign-held cash back to the U.S., and with it a hefty $3 billion tax bill.

The company said repatriating the cash gives it “greater U.S. financial flexibility,” without providing details. Paying taxes on $9 billion in overseas earnings will yield about $6 billion in usable cash in the U.S., eBay said.

Repatriation of cash stashed abroad has become a particular sticking point as more companies set up shell organizations in tax-friendly havens like Ireland and certain Caribbean nations. It’s not clear why eBay chose to take the tax hit, rather than issue debt.